It’s been three months since the city of Jordan entered an agreement with a developer to explore the possibility of building a hotel on two city-owned lots in town.
Now the developer has to decide if they’re ready to put some money on the line.
City staff is set to meet with Allied Development Resources on June 26 to discuss finances before the developer commits to spending money on engineering and design work, City Administrator Tom Nikunen told the city council Monday.
“We’re to that point where they’re going to verify their financial needs and come to that decision,” Nikunen said.
Allied’s agreement with the city doesn’t commit them to developing a hotel. The memorandum of understanding merely limits the city from marketing the property so long as Allied continues to explore the project and meet benchmarks. The developer failed to meet one such benchmark on June 10, when they were supposed to submit land use applications. They’ve since asked for an extension.
Allied’s initial concept is a four-story, 81-room hotel that includes a brew pub, swimming pool, outdoor patio and business incubator space, although the proposal is subject to change based on more market studies.
The vacant lots on the corner of El Dorado Drive across from The Station Bar & Grill were purchased by the city from New Market State Bank last August for $300,000. Following the purchase, the city reached out to hotel developers regarding the property. Allied responded with interest in exploring the feasibility of a GrandStay hotel on the property.
In March the council approved a letter of support for future tax abatement (to be determined later) and sale of the land at a reduced price.
Nikunen said the city won’t make a decision about putting the property back on the market until after the June 26 meeting.